BorgWarner Expects Earnings Growth of 20% to 25%, Sales Growth of 8% to 10%, in 2008
AUBURN HILLS, Mich., Jan. 17 -- BorgWarner Inc. (NYSE: BWA) today provided 2008 earnings guidance of $2.85 to $3.00 per diluted share, which implies earnings growth of 20% to 25% compared with 2007.
"In 2008, we expect another record year for sales and earnings," said Tim Manganello, BorgWarner Chairman and CEO. "Our global business will face two distinct business environments. In Europe and Asia, our operations are expected to flourish, experiencing strong growth across both Engine and Drivetrain, while our North American operations will remain focused on cost management in a weak vehicle production environment. Our technologies, developed to provide better fuel economy, lower emissions and improve performance, will drive growth in 2008 and beyond."
BorgWarner expects to achieve sales growth of 8% to 10% in 2008 compared with 2007 despite lower sales in the U.S. market and moderate global vehicle production growth. North American industry vehicle production is expected to be down, European industry vehicle production is expected to be relatively flat, and solid growth is anticipated in Asia. The impact of foreign currencies in 2008, versus 2007, is expected to be minimal.
The company expects 2008 operating margins to be up from 2007 and within its historical range of 8.5% to 9.0%. The expectation of improved margins can be largely attributed to incremental income from net new business and an intensified focus on cost reductions, which is expected to more than offset the incremental margin lost on lower sales in North America, continued raw material cost pressures, and the costs related to global expansion.
Today, at approximately 11:10 am ET, the company will webcast its presentation at the Auto Analysts of New York conference in Dearborn, Michigan, which will include a discussion of its guidance. The webcast can be accessed at: http://borgwarner.com/invest/webcasts.shtml
Auburn Hills, Michigan-based BorgWarner Inc. (NYSE: BWA) is a product leader in highly engineered components and systems for vehicle powertrain applications worldwide. The FORTUNE 500 company operates manufacturing and technical facilities in 64 locations in 17 countries. Customers include VW/Audi, Ford, Toyota, Renault/Nissan, General Motors, Hyundai/Kia, Daimler, Chrysler, Fiat, BMW, Honda, John Deere, PSA, and MAN. The Internet address for BorgWarner is: www.borgwarner.com.
Additional Important Information CONTACT: Mary Brevard, +1-248-754-0881,
or Ken Lamb, +1-248-754-0884,
both of BorgWarner Inc.
Web site: www.borgwarner.com/
